Im having a hard time with my budget variance sheet. Here is what I have so far and here are the details that my professor gave us as well as the budget worksheet that I got a 100% on last week. 

Teachers details:

When you complete the Budget Variance Worksheet, you need to complete the Labor and Material Variance worksheet first.  Before you try to calculate the variance amounts you need to determine the variables that you will need for the calculations.

For the labor variances these are:

1. Actual Cost – This is the actual cost per unit for labor during the quarter.  This amount is given in the problem information.  Specifically you need to look at critical element 2 and you will find the information in the first sentence (hint is is $15).
2. Actual Quantitiy – This is the actual amount of labor used during the quarter.  This amount is also given in the problem information with the actual cost.
3. Standard Cost – This is the standard cost allowed for the quarter.  It is the budgeted amount.  Specifically you can find it as the cost per hour for labor on the Direct Labor budget (on your student worksheet).
4. Standard Quantity – This is the standard amount of labor (in hours) that were budgeted for the quarter.  Specifically you can find it as the total labor hours on the Direct Labor budget (hint it is 30,000)

For the material variances these are:

1. Actual Cost – This is the actual cost per unit for materials during the quarter.  This amount is given in the problem information.  Specifically you need to look at critical element 2 and you will find the information in the first sentence (hint is is $7.75).
2. Actual Quantitiy – This is the actual amount of material used during the quarter.  This amount is also given in the problem information with the actual cost.
3. Standard Cost – This is the standard cost allowed for the quarter.  It is the budgeted amount.  Specifically you can find it as the cost per unit for materials on the Raw Materials budget (on your student worksheet).  In addition, do not let it confuse you when you find that this amount is the same as the actual cost (hint! hint!)
4. Standard Quantity – This is the standard amount of materials (in units) that were budgeted for the quarter.  Specifically you can find it as the total labor amount of Raw Materials on the Raw Materials  budget (hint it is 60,000)

 ATTACHMENT PREVIEW

Peyton ApprovedBudget Variance ReportFor the Year Ended …VarianceDirect materials variancesCost/price varianceEfficiency varianceTotal direct materials varianceDirect labor variancesCost /price varianceEfficiency varianceTotal direct labor varianceActualResultsStaticBudgetFavorable/Unfavorable

Labor varianceactual cost$15.0033,000$16.0030,000495,000528,000480,00033,000(48,000)FavorableUnfavorableTotal Variance(15000)UnfavorableMaterials varianceactual cost$7.7531,000$7.7527,380-224,750FavorableactualquantitystandardcoststandardquantityThis is a favorable variance, because$1.00 less was spent for actual costdespite spending more on over alltotal priceThis is an unfavorable variance,because while there was lessquantity used $1.00 more onactual cost despite not having touse as many hours.Laborcost/priceVarianceLaborefficiencyVarianceactualquantitystandardcoststandardquantity

 

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• Need help with the budget variance worksheet. I attached a copy of part one and the worksheet. If you need anymore information please let me know.

You are a manager ²or Peyton Approved, a pet supplies manu²acturer. This responsibility requires you to create budgets, make operations to determine i² changes need to be made to make the company more e³cient.You will be preparing a budget ²or the quarter July through September 2015.You are provided the ²ollowing in²orma±on. Theb1. Sales were 20,000 units in June 2015. Forecasted sales in units are as ²ollows: July, 18,000; August, 22,000; September, 20,000is $18.00 per unit and its total product cost is $14.35 per unit.4. The June 30 raw materials inventory is 4,600 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw unit requires 0.50 unit’s o² raw materials. Company policy calls ²or a given month’s ending raw materials inventory to equal 20%6. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $1.35 per unit produced. Defied ²actory overhead.7. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-

You can find an example of a sales budget in Exhibit 22-5 on page 1324 of the textbook. Complete the Production Budget on the Budgets tab below by using the information Found in the budgeted balance sheet above Consider assumption 2 while completing this critical element: ±he June 30 finished goods inventory is 16,800 units. You can find an example of a production budget in Exhibit 22-6 on page 1325 of the textbook. Step 3: Prepare a Manufacturing Budget Raw Material Budget Consider units to be produced Found in the production budget while completing this critical element Direct Labor Budget Consider units to be produced Found in the production budget while completing this critical element Factory Overhead Budget Consider units to be produced Found in the production budget while completing this critical element Step 4: Prepare a Selling Budget Complete the Selling Expense Budget. Step 5: General and Administrative Expense Budget Complete the General and Administrative Expense Budget. His actual quantity of material used was 31,000 with an actual cost of $7.75 per unit. ±he actual labor hours were 33,000 witha Complete the Sales Budget on the Budgets tab below by using the information Found in the budgeted balance sheet above. Consider assumption 1 when completing this critical element: Sales were 20,000 units in June 2015. ²orecasted sales in units are September, 20,000; October, 24,000. ±he product’s selling price is $18.00 per unit and its total product cost is $14.35 per unit. Step 2: Prepare a Production Budget Consider assumption 1 while completing this critical element: Sales were 20,000 units in June 2015. ²orecasted sales in units are September, 20,000; October, 24,000. ±he product’s selling price is $18.00 per unit and its total product cost is $14.35 per unit. Consider assumption 3 while completing this critical element: Going Forward, company policy calls for a given month’s ending next month’s expected unit sales. Complete the Manufacturing Budget on the Budgets tab below by using the information Found in the he manufacturing budget consists of three parts: the Raw Materials Budget, the Direct Labor Budge Budget. Consider assumption 4 while completing this critical element: ±he June 30 raw materials inventory is September 30 raw materials inventory is 1,980 units. Raw materials cost $7.75 per unit. Each fnished materials. Company policy calls for a given month’s ending raw materials inventory to equal 20% of requirements. Consider assumption 5 while completing this critical element: Each finished unit requires 0.50 hourshour. Consider assumption 6 while completing this critical element: Overhead is allocated based on direct variable overhead rate is $1.35 per unit produced. Depreciation of $20,000 per month is treated as Consider assumption 8 while completing this critical element: 8. Sales representatives’ commissions are 12% of sales and are pamanager’s monthly salary is $3,750 per month. Consider assumption 7 while completing this critical element: 7. Monthly general and administrative expenses include $12,000interest on the long-term note payable. He following critical elements must be addressed when performing the Budget Variance Analysis using the Budget Variance Woman is found in the Assignment Guidelines and Rubrics Folder.

 

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